Crypto Market Selloff: Bitcoin and Altcoins Crash In Major Shakeout Before ‘Uptober’ Rally

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As a seasoned researcher with over two decades of experience in financial markets, I have seen countless bull and bear cycles. The current state of the cryptocurrency market reminds me of a rollercoaster ride – thrilling, unpredictable, and sometimes nerve-wracking.

Over the past days, there’s been intense selling across the cryptocurrency sector, fueled by the expectation of a bullish month ahead in October. On Wednesday, both Bitcoin and other altcoins continued their downward spiral while testing critical support points. XRP, Ripple‘s native currency, experienced the steepest decline at 11%, following the U.S. Securities and Exchange Commission (SEC) announcing its intention to appeal the court verdict in the ongoing Ripple lawsuit.

Bitcoin Can Face Another Shakeout

Over the past two days, the value of Bitcoin has been declining due to increased selling activity, coinciding with the intensifying Israel-Iran conflict. With reports suggesting that Israel may retaliate against Iran’s recent attack, the Bitcoin price dropped to around $60,300 earlier today before rebounding over $61,000 at the time of publishing. Notably, crypto analyst IncomeSharks commented on this situation.

As an analyst, I find myself expressing caution: “I’ve noticed a surge in knife-grabbing at the initial dip, as if anticipating a single red day followed by Uptober. However, it seems patience is often required for longer than we might initially think. The topic of $59k has been widely discussed, so let me address that head-on. Given the current overcrowded bidding area, I believe $57k might be a more realistic guess.

Some market analysts are forecasting a drop of over 15% from the present prices if the current BTC levels can’t be maintained by the bulls. At the moment, Bitcoin is hovering near the middle support points within its downward trading trend, which stands at approximately $60,900. If these support levels are breached, a potential drop to around $52,000 could occur.

If the current trend guiding Bitcoin’s recent price fluctuations follows a descending parallel channel, it might dip down to around $52,000.

— Ali (@ali_charts) October 2, 2024

According to another cryptocurrency market expert known as Crypto Capo, if Bitcoin (BTC) drops to around $52,000, he anticipates the price of Ethereum (ETH) could potentially fall to approximately $1,800. In such a scenario, he mentioned that he would consider increasing his holdings in other alternative cryptocurrencies (altcoins).

Altcoins Brace for the Sell-off

Recent findings indicate that should Kamala Harris implement a 25% tax on unrealized capital gains, there’s a possibility of significant selling off in the cryptocurrency market. Consequently, alternative coins may see an additional drop in value.

At the current moment, Ethereum’s price has dipped by approximately 3.58%, dropping below $2400. Other cryptocurrencies such as Solana (SOL), Dogecoin (DOGE), and Toncoin (TON) have also seen a similar decrease in value. Interestingly, Ripple’s XRP is experiencing the most significant decline due to the SEC’s appeal. However, it’s been rumored that Ripple may respond with a cross-appeal in the ongoing XRP lawsuit.

Contrarily to the wider market decline, Suisei (SUI) and Aptos have bucked the trend by registering over 10% growth within the past 24 hours. With the TVL (Total Value Locked) of the SUI Network surpassing $1 billion, the price of SUI is preparing to hit a new record high during this latest spike.

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2024-10-03 08:30